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Google Cloud recently announced the launch of its Anti-Money Laundering AI (AMLAI) service following a successful trial with London-based financial services group HSBC.
AMLAI uses machine learning to create risk profiles, monitor transactions, and analyze data. According to the Google Cloud blog post:
“AI-assisted transaction monitoring replaces a manually defined rule-based approach and uses the power of financial institutions’ own data to train advanced machine learning (ML) models to provide a comprehensive view of risk assessments.”
In practice, Google Cloud claims that its trial partner, HSBC, achieved a two to four times increase in positive alerts and a 60% reduction in false positives.
The cost of the service will vary depending on the number of clients served daily by the AML and risk assessment systems, as well as how many clients are included in the training data used to spin up the model.
The launch of AMLAI marks the advancement of Google and Google Cloud’s fintech ambitions. While the current AI zeitgeist is centered around generative AI products such as the Google Bard chatbot, the company has quietly made its presence known as both a financial technology developer and a banking services provider.
Related: Google Cloud launches free courses to help users build their own GPT-style AI.
During the COVID-19 pandemic, Google quickly rolled out a loan processing tool as part of its Paycheck Protection Program. Over the years, the company has dabbled in alternative payment solutions, such as the widespread Google Pay service and the advent of Google-sponsored debit cards with NFC connectivity.
Google’s continued involvement in the fight against money laundering could be a positive sign for a growing industry. According to an analysis by BlueWeave Consulting, the size of the global AML market was estimated at around $3 billion in 2022 and is expected to reach nearly $8 billion by the end of the decade.
Mitigating factors causing the projected increase include the rise of non-traditional payments, an ever-changing regulatory framework and a steadily creeping increase in money laundering incidents worldwide.